Reaping the benefits of ESG integration in the Western Balkans
Reaping the benefits of ESG integration in the Western Balkans

The Western Balkans’ geographic and economic proximity to the EU offers significant advantages. To maintain and expand this access, however, businesses must adopt ESG practices that meet EU regulatory requirements. This is difficult in a region that is highly affected by environmental degradation, social inequality and demographic decline.
Businesses are facing a wake-up call. For them, ESG is no longer a question of ethics or corporate social responsibility alone – it is a question of business survival. But they cannot do this alone.
Recognising the urgency of these challenges, NLB Banka Sarajevo decided to act quickly.
Our investment
NLB Banka is committed to internal ESG practices and ensuring its MSME clients transform their operations. Since inception, it has been at the forefront of supporting Bosnian businesses with innovative financial solutions and business advice, including pioneering sustainability products.
We first partnered with the bank in 2008 and have enabled over €95 million in sub-loans to Bosnian MSMEs, and provided business trainings to more than 100 entrepreneurs.

ESG is now part of our business. It is what allows us to create a positive footprint. We, both the bank and our MSME clients, are in this together.
Denis Hasanić, Board Member at NLB Banka
Support beyond the investment
NLB Banka identified two issues holding its MSME clients back: inefficient processes and EU trading partners’ insistence on high ESG standards. The bank realised that its journey would not be complete without extending ESG support to its clients.
In response, we provided €15 million in funding and comprehensive Advisory & Capacity Building support. This enabled NLB Banka to conduct a climate risk assessment and integrate ESG into its risk management framework and business operations. We also played a crucial role in equipping NLB’s employees – from senior management to loan officers – with necessary ESG skills.
With our help, NLB Banka provided tailored ESG advice to 20 SME clients. Among them was an industrial parts manufacturer that learned to digitalize its processes and improve waste and water management, boosting efficiency and competitiveness.
Impact of our investment
Today, NLB Banka confidently manages ESG risks and prepares its clients for success. The bank’s efforts were recognised at Bosnia and Herzegovina’s prestigious financial awards ceremony Golden BAM in 2023, highlighting the progress it has made in recent years.
Looking ahead, NLB Banka is committed to launching new sustainable products, formalising its ESG strategy and KPIs, enhancing policies (including introducing ESG requirements for supply chain partners), and educating more MSME borrowers.